Analyst: The Euro may continue to weaken against the British Pound in the short term.

Monex Europe analyst Nick Rees said that the euro has fallen to a one-year low against the pound, and may continue to be under pressure in the short term, as the market has become excessively pessimistic about the eurozone and has overlooked political obstacles in the UK. "Eurozone inflation data has just fallen short of expectations, and we believe that the likelihood of the European Central Bank meeting market expectations and raising interest rates again is very slim," he said. Any hints from ECB President Christine Lagarde at the ECB forum in Portugal later could add pressure on the euro against the pound. Data from the London Stock Exchange Group showed that the euro fell 0.1% to 0.8603 pounds, earlier hitting a one-year low of 0.8590 pounds.